Capital gains

[robbob]

What is the name of your state? Massachusetts

Please let me know if I'm figuring this correctly. I recently sold a condo which I owned for less than two years. I beleive I owe a capital gains tax of 35%. After paying the real estate agents etc. I received a check for $23,000. The condo was purchased for $160,000, and sold for $185,000. ( I owed $151,000 ) So, this would mean I need to set aside $8,050 for the tax guys in April. Is this right, am I missing anything? Thanks!

 

[abezon]

If you owned the condo for more than 1 year, your max tax rate is 18%. However, keep in mind that the $23,000 is added to your income & may bump your other income into a higher tax bracket. If this is a possibility, go see a tax advisor now with a copy of the closing docs from the purchase & sale & last year's tax return. S/he can figure out an approximate tax liability for 2003.

Was the condo your primary residence or a rental? Why did you sell it? You might qualify for a reduced primary home exclusion.